Guayaquil

Constructing The South American City Of The Future

October 7, 2013

Guayaquil is Ecuador’s largest city; it is also the country’s leading port, an economic powerhouse, a growing tourism destination and a model for sustainable urban development. Under the leadership of its forward-thinking mayor, Jaime Nebot Saadi, who came to office in 2000, the city has made spectacular progress over the last two decades and now ranks as one of Latin America’s rising stars.

Guayaquil is the capital of the province of Guayas, and has a population of 2.35 million and more than 3.75 million living in its metropolitan area. The city has made the most of its strategic location on the Guayas, Ecuador’s longest river, which flows from the Andes to the Pacific Ocean, to become one of the seaboard’s busiest ports. Almost three-quarters of the country’s imports and close to half of its exports pass through its bustling harbor every year, helping to generate over 25% of Ecuador’s GDP.

Guayaquil is a rare example of a place that has preserved its history, is prospering in the present challenging global economic climate, and continues to focus on future prospects. Since 2001, its Fundación Municipal Guayaquil Siglo XXI has carried out more than 25 urban regeneration projects on buildings, monuments and streets, and this October the city will celebrate its 193rd anniversary of independence. At the same time, thanks to Mayor Nebot, Guayaquil is looking forward to tomorrow with renewed energy and even more ambitious goals.

Building on the success of showpiece projects like Malecón 2000, the transformation of the 1.5-mile boardwalk along the Guayas riverfront into a cultural and tourism center, and Metrovia, the bus-based rapid-transportation system that serves most of the metropolitan area, Mayor Nebot is now aiming to diversify the city’s offerings for tourists while continuing to strengthen key infrastructure and reinforce the city’s position as a regional hub for trade, investment and business.

Initiatives like these will bolster his administration’s goal to attract ever-greater inflows of visitors, whether for business or leisure, with a renewed focus on the lucrative MICE (meetings, incentives, conferences and exhibitions) sector.

SPOTLIGHT

An Interview With Mayor Jaime Nebot Saadi

Jaime Nebot Saadi was elected Guayaquil’s mayor in August 2000, having served as Guayas’ governor and congressional representative. Over three terms as mayor, he has wrought a transformation in his native city’s fortunes, thanks to his pro-business stance and proactive leadership. He spoke recently about his plans, Guayaquil’s prospects and the secrets of its success. Here are some highlights of that conversation:

Capitalism with humanist values:
“National and foreign investment with legal security, legitimate profit, tax compliance and investment facilitation through incentives are key. All this has to be based on the concept that the best ally a government can have to develop a country or city is a private company.”

Vision of the near future:
“I would like to see Guayaquil with a service platform of high-end technology and logistics, and also with the necessary public works to underpin growth of the private sector. There should be complete confidence from investors and complete well-being among citizens.”

Incentives and support on offer:
“An investor’s priority is legal security. They want to know that the administration believes in private companies and that the law is applied. Every incentive the law allows should be available. There should also be support through public works and services. The deepwater port is an example. It has been done direct with construction companies, private and public financing, and the purchaser.”

Guayaquil’s allure:
“Free progress. This encompasses all the elements mentioned before, but one other thing is very important: Why would you come to Guayaquil? Firstly, it is an easy city to live in and enjoy. Counting international and national visitors, it is the most visited in Ecuador and is the natural way to go to the Galápagos. It has excellent cuisine, hotels and an airport that works 365 days a year. Secondly, in regard to business tourism, companies that do not have business in Guayaquil hold conventions here.”

Formula for success:
“Firstly, an efficient, honest and supportive administration that does not spend much (around 15%) and invests a lot (around 85%). Secondly, having the private sector as an ally for development through concessions, joint ventures, direct investment and so on.”

Urban Dynamic

Partnerships for Progress

A keen observer of other global success stories, Guayaquil’s Mayor Nebot understands that a proactive approach to business fosters development. Since taking office, he has implemented steps to attract privatesector players and capital to Ecuador’s biggest and busiest metropolis, introducing incentives and guarantees to make investors feel welcome. Meanwhile, his government has brought ideas and resources to the table, participating in public-private partnerships (PPPs) that pay dividends for all.

EMAPAG works to improve the city’s sanitation system.

“Private companies have brought a lot to Guayaquil,” reports Vicente Almeyda, the owner of Ventaves, a homegrown shrimp exporter and importer, and a close political ally of Nebot. “They have invested, taken risks and believed in the administration of this city. Public companies also have a vital role in generating investment in urban improvement.”

Cost-effective and efficient cooperation models have helped transform Guayaquil’s aging infrastructure into future-proof facilities, delivered on time. Concessions, foundations and PPPs have undertaken massive developments, such as water and waste services and the privately financed and built Mucho Lote housing schemes.

In 2001, EMAPAG, Guayaquil’s public water and sewer regulator, signed a 30-year contract with Interagua, part of Proactiva Medio Ambiente, to improve and extend supply and sanitation systems. In the late 1990s, some residents only had four hours of water a day and sewers served less than half of the city. This year, all of Guayaquil should have access to piped-water coverage, and waste networks will reach the entire urban area by 2014.

Carlos Ortega Maldonado, Rector, UEES

At the same time, a vibrant private sector has made the most of opportunities to innovate in traditional sectors, such as the Ecuadorian subsidiary of global fruit and vegetable giant Dole, or to carve out new niches, as with Universidad de Especialidades Espíritu Santo (UEES). Established just 20 years ago, UEES has already become the higher-education institution of choice for Guayaquil’s academically inclined and upwardly mobile classes.

“We serve the community and are positioned as the first private university on the equatorial coast. We have been ranked 38th in Latin America and third in Ecuador,” explains Carlos Ortega Maldonado, the rector of UEES.

Peter Gilmore, General Manager, Dole Ecuador

For its part, Dole Ecuador has been exporting bananas worldwide from Ecuador since the 1950s, says Peter Gilmore, the division’s general manager: “We believe in Guayaquil,” he says. “This is one of the best sites in the world to produce bananas. We are very proud of our production and to be part of the city. It is in a class beyond, the people and our operations here. Thanks to them, we are where we are.”

The Heart of the Americas

Positioned for Business

Situated two degrees south of the equator and at the confluence of the Guayas River, the largest waterway west of the Andes, Guayaquil not only occupies a strategic location in Ecuador, it also lies at the very center of the greater American landmass: “We are equidistant with the south and north of the continent,” notes Mayor Nebot.

Capitalizing on Guayaquil’s geography; its excellent communications by air, land and sea; its enviable safety record; and its myriad regeneration programs— including the conversion of the old airport terminal into a new conference center—Mayor Nebot now aims to position his city as a destination for business and MICE tourism. He seeks to diversify the region’s offerings and position it to compete with peers such as Colombia, Costa Rica and Panama.

Eduardo Salgado, CEO, Terminal Terrestre

Guayaquil already has one of the top ten ports in Latin America in terms of container and transshipment volume. The development of a multimillion-dollar facility at the ocean end of the Gulf of Guayaquil will raise the city’s profile and increase its maritime traffic. “I would like to see our port facilities, among them a new deepwater port in Posorja, become part of today’s intercontinental commerce,” Nebot says.

Guayaquil is also home to Ecuador’s second-largest airport, José Joaquín de Olmedo International Airport, which inaugurated a new 540,000-squarefoot terminal in 2006, served nearly 4 million passengers in 2011, and is on track to reach 5 million within the next decade. Last year, it took second place in Latin America, after Cancun International Airport, in the Airports Council International’s Airport Service Quality awards.

José Joaquín de Olmedo International Airport is on track to serve 5 million passengers a year.

Before 2024, the municipal government and the airport authority (Autoridad Aeroportuaria de Guayaquil) intend to develop an all-new facility in the Daular area, 12 miles from downtown and close to the coastal highway. Daular will be one of the very few airports worldwide to have three runways that can operate simultaneously. The project promises to reach new heights in Guayaquil’s history of productive PPPs.

“We are used to providing, through private companies, services the government was not able to offer: roads, healthcare, the port and us,” explains Nicolas Romero, Autoridad Aeroportuaria’s general manager. “Mayor Nebot has been successful in his effort to unite the private and municipal initiatives for housing, Metrovia, Terminal Terrestre Guayaquil and the airport.”

Malecón Estero Salado II, one of Siglo XXI’s many urban regeneration projects in the city

In tandem with Metrovia, the city’s mass-transit bus system, which launched in June 2006 and covers about 20 miles on three routes, the Terminal Terrestre (the central bus station) has revolutionized land transportation in Guayaquil. The new station opened in 2007 with capacity for 42 million users a year. A foundation with public- and private-sector partners undertook the $50 million development.

SPOTLIGHT

Tourism: Travel Light, for Business or Pleasure

Over 1.27 million foreign visitors visited Ecuador in 2012, according to the Ministry of Tourism. While the country’s total overseas arrivals lag a long way behind those of South American giants like Argentina and Brazil, Ecuador’s annual growth of 12% is noteworthy, especially when compared with the United Nations World Tourism Organization’s forecast of 2% to 4% worldwide for 2013.

As interest in Ecuador grows, the city of Guayaquil aims to capture a significant slice of the market, positioning itself not only as the gateway to the Galápagos, but also as an excellent destination in its own right for leisure and business tourism year-round. In particular, the city’s government, under Mayor Nebot, is looking to attract a greater share of the MICE.

Since 2010, the city has marketed itself with the “Guayaquil Light” campaign, the brainchild of Joseph Garzozi, its former director of tourism and an internationally recognized authority on sustainable urban tourism. Leveraging Guayaquil’s enviable climate and laid-back feel, the campaign encourages travelers to bring little luggage, dress casually and make the most of everything the city has to offer, with the utmost ease.

Guayaquil’s Convention Center, a mere five-minute walk from José Joaquín de Olmedo International Airport, is conveniently close to hotel areas, malls and restaurants, making it a very comfortable venue for event organizers and attendees. With three multifunctional spaces and capacity for up to 6,000, it has already hosted over 100 national and international events.

Generating Solutions for Urban Growth Challenges

One of the challenges of Guayaquil’s growth is the need to provide appropriate housing for an expanding population. Rather than leverage municipal funds, Nebot once again turned to the private sector to fund and develop 35,000 new lower- and middle-income residences, which will eventually house 140,000 people. The Mucho Lote (Lots of Land) program is now in its third phase, with five companies—Daldry, Fanbercell, John Martinez, Mutualista Pichincha and Urbanis—constructing the final 10,000 units.

“Mucho Lote marks a milestone in affordable housing,” says Juan Carlos Concha, the commercial manager of Urbanis. “It replicates the best developments at exceptional prices, thanks to the public-private model, which can be applied successfully in any other city in Latin America. It provides the best product for consumers in terms of cost, location and services.”